Supporting retailers through unprecedented supply chain challenges



We give large and mid-sized retailers confidence in knowing they have an appropriate and competitive cost base, helping them to deliver sustainable growth.

These are unprecedented times for retailers, both private, private equity and publicly owned. New business models have changed the industry, putting margins under huge pressure and increasing cost drivers. This trend shows no sign of abating. Whether you’ve been in retail for years, or are part of a new and emerging online model, we understand that the industry is changing and has many new and pressing challenges.

Top-line trends
Technological developments have impacted on retailers top and bottom line. High street retailers are facing significant digital disruption in the face of agile online competitors who have challenged and revolutionised the traditional retail business model. Excess capacity in the high-street and shopping malls has meant that promotions and discounting are becoming the norm, with retailers having less control over prices.
Bottom line disruption
With the digital revolution, fulfilment and last-mile logistics has become a battle field. Agility and speed to market is paramount, even more so at a time when customisation/personalisation and ever-shortening seasons challenge current supply chains in fulfilling customer expectations. At the same time, established retailers are being faced with large store portfolios and legacy-driven, inflexible cost bases, coupled with rising costs in the Far East.
How to respond
While the market is determining the top-line trends, retailers have the opportunity to re-engineer their cost base a source of competitive advantage. Our data analytics and cost modelling capabilities are critical to our success in delivering actionable insights, which we then implement to improve margins. We work with retailers on their entire “end-to-end” model, for example from Asian factories, through the internal organisation, to the store and end customer. Working with you, we identify where the profit is really made and lost, helping you to invest more where returns are highest and stop unnecessary cost bleeds. Typically we deliver 8-10% reduction in overall cost base within 18 months. Our key tool in this journey with clients is a Portfolio review, whereby we will assess true profitability across key business portfolios, including products (costs and design), suppliers and supply chain, and internal costs and stores. We focus on optimising key cost drivers within portfolios to sustainably drive up margins.

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